Midday Commentary: Time Warner Cable softer, Advance Auto notes flat in early trade

By Cristal Cody

Tupelo, Miss., Nov. 26 - Investment-grade bond spreads opened the session on Tuesday mostly unchanged after tightening on Monday, according to market sources.

The Markit CDX North American Investment Grade series 21 index firmed 1 basis point on Monday to a spread of 68 bps.

Advance Auto Parts, Inc.'s new 4.5% 10-year notes sold in the previous session traded flat, a trader said.

Time Warner Cable Inc.'s bonds opened the day slightly wider "on light volumes so far" as market participants absorb reports the company may be a takeover target to consolidate the cable industry, according to a trader.

Comcast Corp. and Charter Communications Inc. both are reportedly eyeing Time Warner Cable to build market share.

Time Warner Cable's 4.125% senior notes due 2021 "felt weaker going into the close last night and are a little weaker to start this morning," the trader said.

Advance Auto unchanged

Advance Auto Parts' 4.5% notes due 2023 traded early Tuesday at 177 bps bid, 170 bps offered, a trader said.

The issue headed out on Monday in secondary trading at 177 bps bid, 174 bps offered.

Advance Auto Parts (Baa3/BBB-/) sold $450 million of the 10-year notes with a spread of 180 bps plus Treasuries on Monday.

Advance Auto Parts is an automotive aftermarket parts and accessories retailer based in Roanoke, Va.

Time Warner Cable softer

Time Warner Cable's 4.125% senior notes due 2021 were quoted early Tuesday at 220 bps bid, 210 bps offered in the secondary market, a trader said.

The issue traded on Friday at 205 bps bid, 185 bps offered.

Time Warner Cable (Baa2/BBB/BBB) sold $700 million of the notes in 2010 at a spread of 155 bps over Treasuries.

The broadband communications company is based in New York City.

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